Fiscal Health Risk Analysis

Did the district file a positive certification on its most recent interim report (not qualified or negative)?

Can the district meet its financial obligations for the current and two subsequent fiscal years without an emergency apportionment or state loan?

Is the district free of any AB 1200 / AB 2756 fiscal advisor assignment, oversight escalation, or state takeover trigger?

Did the most recent audited financial statements avoid a “going concern” or solvency disclosure?

Has the district avoided issuing Tax and Revenue Anticipation Notes (TRANs) primarily to make payroll, as opposed to managing routine cash flow timing?

Is the district projected to end the current fiscal year with a positive ending fund balance in the unrestricted General Fund?

Are all required state and federal financial reports (SACS, interims, year-end) current and filed on time over the last 24 months?

Did the district receive an unmodified (“clean”) audit opinion in the most recent annual audit?

Was the most recent audit completed and submitted by the December 15 statutory deadline?

Are there zero material weaknesses or significant deficiencies in internal control reported in the most recent audit?

Are all prior-year audit findings either resolved or actively remediated under a documented corrective action plan accepted by the board?

Did the governing board formally review and accept the most recent audit at a noticed public meeting?

Is the audit firm rotated, or is firm independence affirmatively reaffirmed, at least every five years?

Was the most recent annual budget adopted on or before July 1 in compliance with Ed Code §42127?

Did the district hold the required public hearing on the budget prior to adoption?

Are budget assumptions (COLA, enrollment, ADA, salary settlements, benefit costs) documented and presented to the board before adoption?

Does the adopted budget align with the most recent multiyear projection?

Are estimated step-and-column, longevity, and benefit cost increases incorporated into the adopted budget?

Has the district avoided structurally relying on one-time funds (e.g., ESSER, prior-year carryover) to balance ongoing operating costs?

Are first and second interim reports filed with the County Office of Education by the statutory deadlines (December 15 and March 17)?

Does the district produce monthly or quarterly internal budget-vs-actual variance reports for the board or executive team?

Are budget revisions and transfers approved by the board through a formal action?

Does the district reconcile actuals against the adopted budget at least at every interim period?

Has the district avoided exceeding total appropriations in any major fund without a formal budget revision?

Are restricted program expenditures monitored against entitlement to prevent over-spending or carryover loss?

Does the district produce a monthly or quarterly cash flow projection covering at least the next 12 months?

Is the projected cash balance positive in every month of the current fiscal year without external borrowing?

Does the district reconcile its bank statements to the general ledger monthly within 30 days of month-end?

Are TRANs (if issued) used for cash flow timing rather than to cover structural shortfalls?

Are interfund borrowings under Ed Code §42603 repaid within the same fiscal year as required?

Are county treasury and reserve fund balances tracked and reconciled with district records monthly?

If the district authorizes one or more charter schools, are oversight fees collected and tracked per Ed Code §47613?

Are MOUs current and signed for every authorized charter?

Has the district reviewed each authorized charter's most recent annual audit and documented any going-concern or material findings?

Is there a documented process for monitoring authorized charters' financial reports and intervening when warranted?

Are revocation and non-renewal procedures documented and consistent with Ed Code §47607?

Are all bargaining unit agreements currently in effect (no expired CBAs operating on continuation status)?

Were AB 1200 public disclosure documents filed for every settled agreement in the last 24 months?

Are the multiyear cost impacts of all settled and pending agreements reflected in the MYP?

Did the COE concur with (rather than negatively certify) the AB 1200 disclosure on the most recent settlement?

Has the district avoided settling agreements whose ongoing cost growth exceeds projected ongoing revenue growth?

If retroactive payments were settled, were they fully funded in the year of settlement (not deferred to a future year)?

Are required contributions to restricted programs (Special Education, Routine Restricted Maintenance) budgeted and made as required?

Does the Routine Restricted Maintenance Account contribution meet the statutory 3% (or applicable phase-in) requirement under Ed Code §17070.75?

Are interfund transfers approved by the board and disclosed in budget documents?

Has the General Fund avoided contributing to the Cafeteria Fund except as part of a documented plan to address structural Cafeteria deficits?

Are contributions to self-insurance, property/liability, or workers' compensation funds based on actuarial review or a documented methodology?

Does the district avoid using one-time transfers to mask ongoing operational deficits?

Did the unrestricted General Fund avoid deficit spending in the most recently completed fiscal year?

Is unrestricted General Fund deficit spending projected to be either zero or fully covered by one-time strategic decisions in the current and two subsequent years?

Are ongoing unrestricted revenues sufficient to cover ongoing unrestricted expenditures (structural balance)?

If deficit spending exists, is there a board-adopted plan with specific, dollar-quantified actions to eliminate it within three years?

Does the district avoid relying on reserves to cover routine, recurring operating costs?

Are deficit-spending trends communicated to the board at least quarterly?

Has the district avoided three or more consecutive years of unrestricted General Fund deficit spending?

Are required employer contributions to CalSTRS and CalPERS paid in full and on time?

Is the OPEB (retiree health) liability disclosed in the audit per GASB 75?

Has the district adopted a strategy (pay-as-you-go, irrevocable trust, or hybrid) for funding OPEB obligations?

Are projected pension and OPEB cost increases reflected in the multiyear projection?

Are health and welfare premium changes built into salary-and-benefit projections each year?

Are workers' compensation experience modifications and rate changes monitored and disclosed in the budget narrative?

Does the district use a documented, defensible methodology for projecting enrollment (cohort survival or comparable)?

Is the district's ADA-to-enrollment ratio above 92% in the most recent fiscal year?

Has projected enrollment landed within ±2% of actual enrollment in two of the last three years?

Does the district have an active attendance recovery and chronic absenteeism reduction strategy?

Are unduplicated pupil count (UPC) data validated and reconciled against CALPADS submissions?

Are enrollment trends from feeder areas (housing development, demographic shifts, charter migration) reviewed at least annually?

Does the district maintain a Facilities Master Plan updated within the last five years?

Is the deferred maintenance backlog quantified and disclosed to the board?

Does the district meet the Routine Restricted Maintenance contribution required under Ed Code §17070.75?

Are bond and COP proceeds tracked separately and used only for purposes authorized by the underlying ballot measure or resolution?

Are FIT (Facility Inspection Tool) reports current for every site and posted as required?

If the district has Prop 39 GO bonds outstanding, is a Citizens' Bond Oversight Committee in place and active?

Does the unrestricted ending fund balance meet or exceed the state-required minimum reserve under Ed Code §42127.01 for the district's ADA tier?

Has the governing board adopted a written reserve policy?

Is the reserve level projected to remain at or above the state minimum across every year of the multiyear projection?

Does the district maintain documented purposes for any committed or assigned fund balance categories?

If reserves are below the district's own policy floor, is there a board-adopted plan to rebuild?

Has the district avoided drawing reserves below the state minimum in any year of the multiyear projection?

Are current-year actuals trending within 5% of the most recent interim projection in major expenditure categories?

Is the current-year ending balance projected at or above the level reported at second interim?

Are restricted program ending balances reasonable and aligned with carryover rules?

Are encumbrances tracked and reconciled monthly in the financial system?

Has the district avoided emergency board actions or out-of-cycle budget revisions to address current-year shortfalls?

Does the district operate a financial/ERP system that integrates general ledger, payroll, position control, and HR?

Are user access rights to the financial system reviewed at least annually with documented role-based separation of duties?

Are financial system data backups performed daily with periodic restore testing?

Has the district adopted documented cybersecurity controls (e.g., MFA on financial systems, endpoint protection, written incident response plan)?

Are CALPADS, SACS, and CBEDS submissions reconciled to source systems before submission?

Is there a documented data governance and records retention policy in force?

Are duties segregated so that no single person can initiate, approve, record, and reconcile a financial transaction?

Are board-adopted policies in place for travel, credit/purchasing cards, contracting, and procurement?

Does the district have a fraud reporting / whistleblower mechanism communicated to staff?

Are vendor onboarding, W-9, and 1099 controls documented and consistently applied?

Are bank, county treasury, and credit card statements independently reviewed by someone other than the preparer?

Are journal entries reviewed and approved by a second qualified individual before posting?

Has the district had no confirmed fraud, embezzlement, or material misappropriation in the last five years?

Has the Superintendent been in role for at least 18 months?

Has the Chief Business Official (or equivalent) been in role for at least 18 months?

Has the governing board avoided more than one censure, recall, or contested resignation in the last 24 months?

Are documented succession or interim-coverage plans in place for the Superintendent and CBO roles?

Has the district avoided three or more Superintendent or CBO turnovers in the last five years?

Does the district submit a multiyear projection (current plus two subsequent years) with budget adoption and each interim report?

Are MYP assumptions (COLA, enrollment, ADA, step/column, benefits, settlements) documented and shared with the board?

Does the MYP align with the COE's standards-and-criteria requirements?

Are at least two scenarios (e.g., baseline and adverse) presented to the board annually?

Is the MYP reconciled to the latest approved budget at each interim period?

Does the MYP demonstrate the district can meet its obligations and reserve requirements in years 2 and 3 without one-time fixes?

Are all Certificates of Participation (COPs), capital leases, and Pension Obligation Bonds disclosed in the budget and audit?

Are debt service schedules incorporated into the multiyear projection?

Has the district avoided issuing non-voter-approved debt without board public disclosure?

Are continuing disclosure obligations (EMMA filings) current for every outstanding debt issuance?

Is there a board-adopted debt management policy?

After debt service, is there capacity in the General Fund to meet operating costs through every year of the MYP horizon?

Does the district operate a position control system that requires a budgeted, board-approved position before any hire?

Is position count reconciled monthly between Human Resources and Business / Payroll?

Does the position control system enforce that no employee can be paid from a position not in the system?

Are vacant positions reviewed at least quarterly to determine whether to fill, hold, or eliminate?

Are off-schedule, out-of-classification, and stipend payments reviewed and authorized through a documented control?

Are projected step, column, and longevity costs derived from the position control system rather than estimated separately?

Has the district avoided unbudgeted hires, retroactive position creation, or “phantom” positions in the last 24 months?